Primary Residence Exemptions
Those seeking a Primary Residence Exemption must execute an affidavit and promissory note (affidavit example) in addition to the application. There is a $26 application fee payable by cash or check for all Primary Residence Exemptions.
Primary Residence Exemption Checklist
- Read the conditions of the primary exemption below
- Real Estate Transfer Tax Application
- Promissory Note & Affidavit
- Check or cash for $26
(15) Primary Residence Exemption - The conditions of the Primary Exemption include:
- The applicant must meet the definition of a Primary Resident as provided in section 3.12.020 of the Town of Avon Municipal Code.
- Occupation and use of a residence as a primary residence must occur within thirty (30) days of transfer of the real property, provided that the Town Manager may grant an extension of an additional ninety (90) days if extenuating circumstances are found to exist in the Town Manager’s discretion and provided that such extension request is included with the applicant’s application for exemption.
- The first $160,000 of the purchase price is exempted from the 2% transfer tax, therefore the maximum exemption is $3,200. The exemption is only applicable to the buyers portion of the tax. The seller is not intended to benefit from the primary exemption.
- A lien for the amount of exempted transfer tax is placed on the property for one full year after the date of acquisition. The Town will release the lien no sooner than one year after the acquisition date if the Borrower provides evidence that the property was used as a primary residence. Evidence may include a Colorado Driver’s License or ID and/or voter registration that lists the exempted property as the applicant’s current address.
- If the applicant does not meet these conditions, or sells the property within the first year of residency, the amount of exempted transfer tax will be immediately due and payable.
If you have previously received a Primary Residence Exemption, then you may apply for a Subsequent Primary Residence exemption.
(16) Subsequent Primary Residence exemption
This exemption is used when an applicant has previously received the (15) Primary Residence exemption on another property. The applicant must execute all of the documents required for exemption (15), and in addition, provide an employment verification letter from the current employer which states that the applicant meets the definition of an Eagle County employee by working an average of at least 30 hours per week per year or earns 75% of his/her income by working in Eagle County. Retired individuals applying for this exemption must have worked a minimum of five years in Eagle County for an average of at least 30 hours per week per year evidenced by a verification letter from the past employer.